From 2026, the monthly pension of employees participating in compulsory social insurance (SI) will be implemented according to the provisions of Article 66 of the Law on Social Insurance 2024.
Accordingly, female workers have a pension of 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, not exceeding 75%. Male workers are calculated at 45% corresponding to 20 years of social insurance contributions, each additional year of contributions is added by 2%, the maximum is also 75%.
Thus, male workers who have paid 35 years of social insurance and female workers who have paid 30 years of social insurance will achieve the maximum pension of 75% of the average salary used as the basis for social insurance contributions.
According to Article 68 of the Social Insurance Law 2024, employees with a higher social insurance contribution period than the maximum pension when retiring will receive two regimes at the same time, including pension and one-time allowance.
The pension regime includes monthly pension, a lifelong free health insurance card with a payment of 95% of medical examination and treatment costs and death benefits according to regulations.
The one-time allowance is calculated for the period of time the employee has paid social insurance for more than 30 years for female employees and 35 years for male employees.
The 2024 Social Insurance Law also clearly stipulates how to calculate a one-time pension upon retirement. In case the employee is eligible for pension and completes the retirement procedure immediately, the subsidy level is calculated at 0.5 times the average salary used as the basis for social insurance contributions for each year of excess contributions.
For cases where employees are eligible for pension but continue to participate in social insurance, the one-time allowance is calculated at twice the average salary used as the basis for social insurance contributions for each year of over-payment.
The Ministry of Home Affairs also provides detailed instructions on this content in Article 14 of Circular No. 12/2025/TT-BNV. Accordingly, the period of social insurance payment exceeding the maximum level is divided into two stages to calculate a one-time allowance.
Each year of social insurance payment exceeding the maximum before reaching retirement age is calculated at 0.5 times the average salary used as the basis for social insurance payment. Each year of excess contributions after reaching retirement age is calculated as 2 times the average salary used as the basis for social insurance contributions.
This regulation aims to encourage employees to continue working, participating in social insurance and ensuring higher benefits upon retirement.
